Energy Transfer LP · NYSE:ET
Energy Transfer LP — Energy Transfer Partners — 2009 MLP Investor Conference
40 slides from Energy Transfer LP's conference presentation, Sep 16, 2009
Slide 1: 2009 MLP Investor Conference
2009 MLP Investor Conference September 16, 2009
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may contain statements about future events, outlook and expectations of Energy Transfer Partners, L.P. (ETP) and Energy Transfer Equity, L.P. (ETE) (collectively, the “Partnerships”), all of which are forward-looking statements. Any statement in this presentation t
Slide 3: Agenda
Agenda y About Energy Transfer y Industry Overview y Operations Overview y Strategic Project Update y Financial & Liquidity Update y Investment Considerations y Questions & Answers 3
Slide 4: About Energy Transfer
About Energy Transfer • Energy Transfer Partners, L.P. (ETP) is the third largest master limited partnership in the United States. • ETP is one of the leading transporters of natural gas with more than 17,500 miles of pipelines with an additional 180 miles of interstate pipeline to be completed. In
Slide 5: Pipeline Asset Map
Pipeline Asset Map 5 5
Slide 6: Corporate Structure
Corporate Structure Energy Transfer Equity, L.P. Public Unitholders 2% General Partner Interest 100% ETP IDRs 69% 37% ETP Common Units (62.5 Million Units) Energy Transfer Partners, L.P. Public Unitholders 63% Intrastate & Interstate Retail Midstream Propane 6 6
Slide 7: Industry Overview
Industry Overview 7
Slide 8: Industry Overview
Industry Overview y Natural Gas Prices and Projections y Rig Counts y Consumption/Demand y Costs y Steel y Construction 8
Slide 9: Operations Overview
Operations Overview 9
Slide 10: Intrastate Asset Overview
Intrastate Asset Overview 10
Slide 11: Transportation and Storage
Transportation and Storage y Largest intrastate pipeline system in the United y Integrated with our gathering and processing States with nearly 8,000 miles of transportation assets providing full midstream services to our customers in addition to commercial and pipelines and three natural gas storag
Slide 12: Midstream
Midstream y Principally consists of the Southeast Texas System, the North Texas System, and Canyon Gas Gathering y Approximately 7,000 miles of natural gas gathering pipelines, three natural gas processing plants, eleven natural gas treating facilities and ten natural gas conditioning facilities y O
Slide 13: Interstate Asset Overview
Interstate Asset Overview 13
Slide 14: Interstate Transportation
Interstate Transportation y Interstate pipelines include: y Transwestern Pipeline – approximately 2,700 miles of 36 and 42 inch diameter pipeline with 2.1 Bcf/d of throughput capacity geographically positioned to access markets in the Midcontinent and Texas as well as the growing markets of Californ
Slide 15: Retail Propane Locations
Retail Propane Locations Retail Propane Locations 15
Slide 16: Propane Operations
Propane Operations • One of the three largest retail propane marketers in the United States y Operations extend from coast to coast with concentrations in the Western, upper Midwestern, Northeastern, and Southeastern regions of the United States y Principally a cost-plus business model with an empha
Slide 17: Strategic Project Update
Strategic Project Update 17
Slide 18: Texas Pipeline Growth Projects
Texas Pipeline Growth Projects 18
Slide 19: Major Intrastate Projects
Major Intrastate Projects • Since the beginning of 2008, we have completed more than 600 miles of large- diameter pipeline projects with an aggregate capacity of more than 6.45 Bcf/d: Completion Project Cost Project Capacity Miles Date ($millions) 42” Southeast Bossier 1.25 Bcf/d 157 2Q 2008 $470 36
Slide 20: Interstate Projects
Interstate Projects 20
Slide 21: Interstate Projects
Interstate Projects • We have completed (or participated in the completion of) approximately 790 miles of interstate pipeline subsequent to our acquisition of the Transwestern Pipeline in 2006 and have an additional 365 miles of interstate pipeline under development. Project Cost Project Capacity Mi
Slide 22: San Juan Loop and Phoenix Lateral
San Juan Loop and Phoenix Lateral 22
Slide 23: Midcontinent Express Pipeline (MEP)
Midcontinent Express Pipeline (MEP) Zone-1 Zone-2 23 23
Slide 24: MEP – Project Summary
MEP – Project Summary • MEP will provide takeaway capacity from multiple, high-growth Midcontinent and Texas shale plays with the opportunity to deliver natural gas to the Northeast, Southeast, Mid-Atlantic, and Midwest markets. y 505-mile natural gas pipeline that runs from Bennington, OK in Bryan
Slide 25: Fayetteville Express Pipeline (FEP)
Fayetteville Express Pipeline (FEP) 25 25
Slide 26: FEP – Project Summary
FEP – Project Summary • FEP will transport natural gas from the Fayetteville Shale in Arkansas to pipelines serving the Midwest and Northeast. y 185-mile natural gas pipeline will originate in Conway County, Arkansas, continue eastward through White County, Arkansas, and terminate at an interconnect
Slide 27: Tiger Pipeline
Tiger Pipeline Peis Arkansas : y sing % f } ie ca A | s \ J v f ( . vir i } f cas : } 3 f pe | =| ae . 3 Mwavshas \ ee le or = Rightand of a5, fenn \ | | Ouachita ETC Carthage Hub Receipt Area a 3 [aNR] cl ony \ — z Sion \ X So ano isCarthage Gannisni peg River 2 S 4 ye c) Cousnatta i 4 wis y| - Jen
Slide 28: Tiger Pipeline - Project Summary
Tiger Pipeline - Project Summary The Tiger Pipeline will be 100% owned and operated by ETP. y 180 miles of 42 inch pipeline originating at an interconnect with HPL in Panola County, Texas and will follow an easterly direction to the Perryville Hub in Richland Parish, Louisiana. y Initial capacity pl
Slide 29: Financial & Liquidity Update
Financial & Liquidity Update 29
Slide 30: Financial Objectives
Financial Objectives y Continue growth in distributable cash flow y Target projects/assets that provide for appropriate rate of return and that integrate with our asset base y Transactions structured to meet appropriate credit metrics y Maintain attractive cash flow profile y Generate stable cash fl
Slide 31: Key Financial Measures
Key Financial Measures ($ million) Q1 09 Q2 09 YTD 2009 Outlook 2008 Actual Actual Actual Low High EBITDA: Intrastate 1,039 214 232 446 985 1,055 Interstate 164 39 50 89 225 240 Propane 200 185 25 210 290 305 Other - 3 1 4 - - 1,403 441 308 749 1,500 1,600 Capital Expenditures: Growth: Intrastate 1,
Slide 32: Annualized Distribution per Unit
Quarterly Distribution Growth(1) $3.58 $3.58 $3.58 $3.58 $3.58 $3.48 $3.50 $3.38 $3.30 Annualized Distribution per Unit $3.23 $3.15 $3.08 $3.00 $3.00 $2.55 $2.50 $2.35 $2.20 $2.00 $1.95 $2.00 $1.85 $1.75 $1.50 09 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 9 (2 ) 00 00 00 00 00 00 00 00 00 00 00 00 2 00 2 00 2
Slide 33: Debt Capitalization
Debt Capitalization ($ million) 6/30/2009 Revolving Credit: Wachovia $ - Bank of Oklahoma - Total ETP Revolving Credit - ETP Senior Notes: 5.65% due 2012 400 6.00% due 2013 350 8.50% due 2014 350 5.95% due 2015 750 6.13% due 2017 400 6.70% due 2018 600 9.70% due 2019 600 9.00% due 2019 650 6.63% due
Slide 34: Revolving Credit Facilities
Revolving Credit Facilities ETP y $2.0 billion facility y Expires in July 2012 y $1.94 billion of available borrowing capacity as of June 30, 2009 ETE y $500 million facility y Expires in February 2011 y $378 million of available borrowing capacity under the credit facility as of June 30, 2009 with
Slide 35: Investment Considerations
Investment Considerations y Strategically positioned and well diversified asset base serving many of the major North American natural gas producing basins • North Texas (Barnett Shale) • Rockies (Piceance / Uinta / San Juan) • East Texas (Bossier) • Arkansas (Fayetteville Shale) • West Texas (Permia
Slide 36: Investment Considerations, continued
Investment Considerations, continued y Stable asset base and cash flow profile y Significant fee-based operating income y High-quality customer base with strong credit profile y Strong financial performance y 2008 EBITDA of $1.4 billion, an increase of 23% over LTM 12/2007 y Expected 2009 EBITDA of
Slide 37: Investment Considerations, continued
Investment Considerations, continued y Well managed organic growth projects y Low risk, high return projects supported by long-term contracts y Demonstrated ability to construct and place into service pipelines on-time and on-budget y $1.9 billion of growth capital expenditures in 2008 y $1.3 - $1.4
Slide 38: Questions and Answers
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Slide 39: ETP EBITDA Reconciliation
ETP EBITDA Reconciliation Four Months Ended Year Ended Three Months Three Months Year Ended December 31, December 31, Ended March Ended June August 31, 2007 2007 2008 31, 2009 30, 2009 Net income $ 676,139 $ 261,824 $ 866,023 $ 307,167 $ 150,738 Depreciation and amortization 179,162 71,333 262,151 7
Slide 40: ETP EBITDA Reconciliation (cont’d)
ETP EBITDA Reconciliation (cont’d) y The Partnership has disclosed in this presentation EBITDA, as adjusted, which is a non-GAAP financial measure. Management believes EBITDA, as adjusted, provides useful information to investors as a measure of comparison with peer companies, including companies th
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